There's little chance that Congress will send President Obama a budget to sign in April. Lawmakers have already locked in their paychecks, though, despite the crowing over a new law that claims "no budget, no pay" for members of the House and Senate.
Turns out, the law that requires Congress to pass a budget by April 15 or forfeit their pay doesn't do what its supporters said it would do. Yes, the measure requires lawmakers to pass a budget bill by then, but the two chambers don't have to pass the same bill, and it doesn't have to be signed into law.
Since the House and Senate passed separate budget bills last week, they've already met the supposedly onerous requirements of the pay law, even though the likelihood of having a budget in place is something close to zero. There are just too many differences between the two bills to find common ground in a few short weeks.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Republican-controlled House's bill, crafted by Budget Committee Chairman Paul Ryan (R-WI), is designed to balance the federal budget in 10 years through deep spending cuts and reforms to Medicare and Medicaid. The Democratic-led Senate's version, steered by Budget Committee Chairman Patty Murray (D-WA), calls for about $1 trillion in new tax revenues.
Each bill will die in the other chamber. Senate Democrats won't swallow deep cuts in government spending or put entitlement programs on the table without any offsetting revenue, and House Republicans will balk at tax increases.
President Obama will introduce his budget blueprint in early April, but don't expect a compromise measure that borrows from the Ryan and Murray plans. The president's offering will be just as partisan as the other two. And, just like the House and Senate versions, Obama's budget will be declared dead on arrival.
After the artificial April 15 deadline passes, a budget deal likely will remain out of reach. It's a matter of timing. If a budget accord isn't reached by August, it's probably not going to happen. With Congress away for much of August and the fiscal year starting on October 1, lawmakers will instead resort to a continuing resolution to keep the government running for a few months.
By the time that temporary measure winds down, representatives and senators will be knee-deep in political fund-raising for the 2014 elections, and that will end any chance of a big budget bargain. Tax increases and changes to Medicaid and Social Security are poison pills at election time. So more short-term funding resolutions will be in store, just as they have been in recent years.
But one good thing did come about because of the no-budget-no-pay bill: The Senate passed a budget bill for the first time since April 2009. So all was not lost, although nothing substantial was gained.
Except for the passage of a Senate spending bill, the budget process for fiscal 2014 will look a lot like every other budget process so far in the Obama era, and the government will limp along from one short-term funding measure to the next.
-
Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market TodayNvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500.
-
Where You Choose to Stash $100k Now Comes with a Big Opportunity CostThe Fed recently cut rates. Here's where to maximize your savings while rates remain higher.
-
What’s the New 2026 Estate Tax Exemption Amount?Estate Tax The IRS just increased the exemption as we enter into a promising tax year for estates and inheritances.
-
Standard Deduction 2026 Amounts Are HereTax Breaks What is the standard deduction for your filing status in 2026?
-
Three Popular Tax Breaks Are Gone for Good in 2026Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. High-income earners could also get hit by a 'surprise' tax bill.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's FinancesTax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
Key 2025 Tax Changes for Parents in Trump's MegabillTax Changes Are you a parent? The so-called ‘One Big Beautiful Bill’ (OBBB) impacts several key tax incentives that can affect your family this year and beyond.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'Tax Deductions The GOP tax bill could make hidden homeowner costs worse for you. Here’s how.
-
Summer Programs for Kids at Risk Due to Trump Grant Funding CutsTax Dollars Some after-school and summer programs may begin to cut back hours or shut down entirely due to federal cuts to volunteer programs.
-
Can Homeschoolers Save on Expenses With 529 Plans?Savings Accounts A new so-called 'home school tax break' could change how you save for your child's homeschool education. Find out how.
